Just like we’ve seen in the past with prime and option-arm loans going into default, we’ll see a new tidal wave of subprime and ALT-A loans.

This also means that FHA is changing the rules for purchases, making it harder to buy homes, and possibly making the problem even worse in the short-term.

Over the next few years, home prices could drop even more, making homes even cheaper to purchase. This upside-down home economy is causing more people to walk away from mortgages for those going into default.

When does this tumbling snowball hit the bottom of the mountain? Soon I hope!

As with all scary news, take this with a grain of salt. The sky is not falling. Life must go on – fear and trembling is to warn us of oncoming danger, not possess us. We’ll all be okay – really!

For all of us investors out there, let’s do what we do best – take action on these economic changes and fix the problems while making a handsome profit!

Here’s a link to the article:
http://beforeitsnews.com/story/16576/U.S._Economy_To_Be_Hit_By_Second_Wave_of_Mortgage_Defaults.html